The dominance of Visa, along with Mastercard and the big banks that issue most credit cards, comes with high costs for small business owners and consumers.
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Here’s a look at six small business issues at stake in next month’s federal and state elections, including bank reform, corporate tax advantages, getting corporate money out of politics, capping credit card fees, and creating preferences for local businesses in government purchasing. … Read More
Credit card processing is not only highly concentrated – MasterCard, Visa, and American Express control 93 percent of the market – but competition among the card processors tends to raise, not lower, the fees they charge merchants, according to a new report from the U.S. General Accounting Office. … Read More
Independent businesses are largely at the mercy of Visa and MasterCard when it comes to the fees they must pay every time they swipe a credit card. These fees, which are ultimately passed on to consumers in the form of higher prices, have soared from $27 billion in 2004 to $48 billion last year (or $427 per household). Recognizing the tremendous market power held by card processors, many countries now regulate credit card transaction fees, setting them at rates as low as one-sixth of what U.S. businesses pay. … Read More